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Measuring Innovation in European Industry

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Listed:
  • Rinaldo Evangelista
  • Tore Sandven
  • Giorgio Sirilli
  • Keith Smith

Abstract

This paper analyses the results of the 1993 Community Innovation Survey (CIS). Fifty per cent of European firms introduced a product or process innovation during 1990-92. The share of innovating firms varies between industrial sectors and firm size. The percentage of innovating firms is higher for large firms than for smaller ones. In high-tech sectors this share is two thirds and for traditional ones is one third. The largest part of firms' expenditure for innovation is linked to the adoption and diffusion of technologies through machinery and equipment, which absorbs 50% of firms' innovation expenditure. R&D activities represent, on average, 20% of total innovation expenditure while other innovative activities, such as design and trial production, account respectively for 10% and 11%. The mix of innovation inputs, especially R&D and investment, is strongly correlated with firm size, displays little change across countries and varies greatly across industries.

Suggested Citation

  • Rinaldo Evangelista & Tore Sandven & Giorgio Sirilli & Keith Smith, 1998. "Measuring Innovation in European Industry," International Journal of the Economics of Business, Taylor & Francis Journals, vol. 5(3), pages 311-333.
    • Handle: RePEc:taf:ijecbs:v:5:y:1998:i:3:p:311-333
    DOI: 10.1080/13571519884413
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    References listed on IDEAS

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    1. Cohen, Wesley M. & Levin, Richard C., 1989. "Empirical studies of innovation and market structure," Handbook of Industrial Organization, in: R. Schmalensee & R. Willig (ed.), Handbook of Industrial Organization, edition 1, volume 2, chapter 18, pages 1059-1107, Elsevier.
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    4. Keith Smith & Georgio Sirilli & Tore Sandven & Rinaldo Evangelista, "undated". "Innovation Expenditures in European Industry," STEP Report series 199705, The STEP Group, Studies in technology, innovation and economic policy.
    5. Zoltan Acs & David Audretsch, 1990. "Innovation and Small Firms," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262011131, December.
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    4. A. Altuzarra & C. Puerta & F. Serrano, 2007. "Evaluating the Relative Innovative Position of European Union Member Countries: An Empirical Analysis," International Review of Applied Economics, Taylor & Francis Journals, vol. 21(1), pages 175-188.
    5. Manuel Mira Godinho & Sandro F. Mendonça & Tiago Santos Pereira, 2005. "Towards a taxonomy of innovation systems," Working Papers Department of Economics 2005/13, ISEG - Lisbon School of Economics and Management, Department of Economics, Universidade de Lisboa.
    6. Ardito, Lorenzo & D'Adda, Diego & Messeni Petruzzelli, Antonio, 2018. "Mapping innovation dynamics in the Internet of Things domain: Evidence from patent analysis," Technological Forecasting and Social Change, Elsevier, vol. 136(C), pages 317-330.
    7. Olsen, Jane & Lee, Boon-Chye & Hodgkinson, Ann, 2006. "Innovation in Small and Medium-Sized Enterprises: A Study of Businesses in New South Wales, Australia," Economics Working Papers wp06-04, School of Economics, University of Wollongong, NSW, Australia.
    8. Ahmad, Muhammad Farooq & Aziz, Saqib & Dowling, Michael & Kowalewski, Oskar, 2023. "Board reforms and innovation," International Review of Financial Analysis, Elsevier, vol. 88(C).
    9. Edquist , Charles & Zabala-Iturriagagoitia , Jon Mikel, 2015. "The Innovation Union Scoreboard is flawed: The Case of Sweden – not the innovation leader of the EU – updated version," Papers in Innovation Studies 2015/27, Lund University, CIRCLE - Centre for Innovation Research.
    10. Edquist, Charles & Zabala, Jon Mikel, 2009. "Outputs of innovation systems: a European perspective," Papers in Innovation Studies 2009/14, Lund University, CIRCLE - Centre for Innovation Research.
    11. Fahad Assad Al. Othman & Osama Sohaib, 2016. "Enhancing Innovative Capability and Sustainability of Saudi Firms," Sustainability, MDPI, vol. 8(12), pages 1-16, November.
    12. Rinaldo Evangelista & Simona Iammarino & Valeria Mastrostefano & Alberto Silvani, 2002. "Looking for Regional Systems of Innovation: Evidence from the Italian Innovation Survey," Regional Studies, Taylor & Francis Journals, vol. 36(2), pages 173-186.
    13. Edquist , Charles & Zabala-Iturriagagoitia , Jon Mikel, 2015. "The Innovation Union Scoreboard is Flawed: The case of Sweden – not being the innovation leader of the EU," Papers in Innovation Studies 2015/16, Lund University, CIRCLE - Centre for Innovation Research.
    14. Ohsung Kwon, 2020. "A study on how startups approach sustainable development through intellectual property," Sustainable Development, John Wiley & Sons, Ltd., vol. 28(4), pages 613-625, July.
    15. Tim Mazzarol & Sophie Reboud, 2005. "Customers as Predictors of Rent Returns to Innovation and Small Firms – an exploratory study," Post-Print hal-00472438, HAL.
    16. Kannebley, Sergio Jr. & Porto, Geciane S. & Pazello, Elaine Toldo, 2005. "Characteristics of Brazilian innovative firms: An empirical analysis based on PINTEC--industrial research on technological innovation," Research Policy, Elsevier, vol. 34(6), pages 872-893, August.
    17. E. Cefis & A. Sabidussi & E.J.J Schenk, 2007. "Do mergers of potentially dominant firms foster innovation? An empirical analysis for the manufacturing sector," Working Papers 07-20, Utrecht School of Economics.
    18. Alegre-Vidal, Joaquin & Lapiedra-Alcami, Rafael & Chiva-Gomez, Ricardo, 2004. "Linking operations strategy and product innovation: an empirical study of Spanish ceramic tile producers," Research Policy, Elsevier, vol. 33(5), pages 829-839, July.
    19. Albino, Vito & Ardito, Lorenzo & Dangelico, Rosa Maria & Messeni Petruzzelli, Antonio, 2014. "Understanding the development trends of low-carbon energy technologies: A patent analysis," Applied Energy, Elsevier, vol. 135(C), pages 836-854.
    20. Fornahl, Dirk & Brenner, Thomas, 2009. "Geographic concentration of innovative activities in Germany," Structural Change and Economic Dynamics, Elsevier, vol. 20(3), pages 163-182, September.
    21. Kwon, Heeyeul & Park, Yongtae & Geum, Youngjung, 2018. "Toward data-driven idea generation: Application of Wikipedia to morphological analysis," Technological Forecasting and Social Change, Elsevier, vol. 132(C), pages 56-80.
    22. T. Joseph Musandiwa & Collins C. Ngwakwe, 2020. "Effect of Technology Adoption on New Product Innovation," Managing Global Transitions, University of Primorska, Faculty of Management Koper, vol. 18(3 (Fall)), pages 177-194.

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